We are providing you some basic and important concepts of all the chapters that are based on your Important MCQ Theory for Term-I exam | 2021-22 pattern with latest MCQs
Know all about Accounting. You can ask any question and post your replies.
We are providing you some basic and important concepts of all the chapters that are based on your Important MCQ Theory for Term-I exam | 2021-22 pattern with latest MCQs
Chapter 4-Change in Profit Sharing Ratio among the Existing Partners -TS Grewal’s 2021 Asha Nisha and Disha chapter-4 TS Grewal Question 5, 6, 7, 8 Q:- 5 Asha, Nisha and
Consistency concept Once a business chooses to use a specific accounting method, it should continue using it on a go-forward basis. By doing so, financial statements prepared in multiple periods
Materiality Concept or Materiality states that all material facts must be a part of the accounting process. But immaterial facts, i.e. insignificant information should be left out. The materiality of
According to this concept all accounting transactions should be evidenced and supported by objective documents like vouchers, bills, letters, Pay-in-Slips, Receipts, invoices etc. This ensures transaction being recorded are free
According to this concept, the revenue should be considered only when it is realized. Any business transaction should be recorded only after it actually taken place. Production of goods does
Accrual concept implies that revenue is recognized in the period in which it is earned irrespective of the fact whether it is received or not during that period. In the
The life of the business is considered to be indefinite, but the measurement of income cannot be postponed for a very long period of time. Therefore, it is necessary to
According to this concept, all assets are recorded in the books of accounts at their purchase price, which includes cost of purchase, transportation and installation and not at its market
As per this concept all business transactions must be in terms of money. Thus, as per the money measurement concept, transactions which are of financial nature are only recorded in
Today we will know about the Matching Principle in Accounting. In a very different and easy way with example. According to matching principle, expenses incurred in business must be charged
According to this concept, proprietor and business are two different entities. Business Entity Concept ensures that transactions are recorded from the point of view of business, not proprietor. Now to
Dual aspect concept says that every transaction in business has dual effect, means there are two aspects of any transaction. One is action of the transaction and other is reason
Going Concern Assumption Nobody starts business with the target of winding up business in short period of time. So, this assumption is created and adopted for the processing of business transactions.
Asset in financial accounting is the property of a business that has money value, benefit for which can be availed in future or it can be converted into cash. Some
To answer this we need to understand very basic thing that is why do we need accounting? Well, accounting is necessary for systematically recording financial business transactions, so that same
What is Expense? Expense in financial accounting is the money value for which benefit has already been taken. Examples of expense are: salary, rent, repairs, depreciation etc. Lets understand this
What is Liability? Liabilities are obligation or we can say is the claim of outsiders on business. Lets understand this by example: In a business if you require money that
Introduction to Accounting. Accounting is a process of identifying, recording, classifying, summarizing and interpreting business transactions of financial nature. Now, to exactly understand the above definition you must understand each